European shares moved higher on Thursday as investors showed resilience despite fresh trade tariff measures announced by U.S. President Donald Trump.
By 07:05 GMT, Germany’s DAX climbed 0.4%, France’s CAC 40 added 0.4%, and the U.K.’s FTSE 100 advanced 0.8%.
Latest U.S. tariff announcements
On Wednesday, President Trump issued new tariff directives targeting imports from at least seven additional countries, building on similar notifications sent earlier in the week to 14 other nations.
He also imposed a 50% tariff on Brazilian goods following tensions with Brazil’s President Luiz Inacio Lula da Silva, who warned that Brazil would respond with retaliatory measures.
Additionally, Trump confirmed a 50% tariff on copper, following through on his previous threat.
Despite these developments, European markets found some encouragement as the European Union avoided the latest tariff wave, raising hopes that a trade agreement might be near.
EU trade commissioner Maros Sefcovic remarked that substantial progress has been made toward a trade framework, with a deal potentially achievable within days.
German inflation aligns with ECB target
German inflation slowed to 2.0% in June, matching the European Central Bank’s target rate and confirming earlier estimates.
Consumer prices harmonized across the EU had risen 2.1% year-over-year in May.
Economists at Capital Economics expect the ECB to hold off on further rate cuts until September, citing ongoing trade uncertainties and the euro’s recent strength.
In June, the ECB cut its key deposit rate by 25 basis points to 2.0%, marking the eighth reduction in a year.
U.S. labor data and Fed speeches in focus
Across the Atlantic, market watchers will monitor weekly jobless claims as an indicator of labor market health, while Federal Reserve officials Christopher Waller and Mary Daly are scheduled to speak during the day.
Corporate updates
German luxury automaker Porsche (BIT:1PORS) anticipates a €300 million ($351 million) negative impact on earnings from absorbing U.S. import tariffs in April and May, ahead of its quarterly results release.
Advertising giant WPP (LSE:WPP) announced Cindy Rose, a senior Microsoft executive, as its incoming CEO. Rose, who has been on WPP’s board since 2019, will succeed Mark Read on September 1. This appointment follows the company’s recent downward revision of profit forecasts.
Chocolate producer Barry Callebaut (TG:BCLN) reported a 6.3% decline in sales volume over the first nine months of fiscal 2024-25 but saw revenue increase by 56.7% in local currencies, driven by higher cocoa prices.
Meanwhile, activist investor Standard Investments cut its stake in London-listed specialty chemicals firm Johnson Matthey (LSE:JMAT) by half after a six-month campaign prompting significant corporate changes.
Oil prices hold steady
Oil futures were mostly unchanged Thursday as traders weighed trade uncertainties against strong U.S. gasoline demand.
At 03:05 ET, Brent crude futures hovered around $70.19 per barrel, while West Texas Intermediate futures slipped 0.1% to $68.34 per barrel.
Apprehension over how tariffs might affect global demand has encouraged cautious trading, even as geopolitical risk premiums eased following the Israel-Iran truce.
The U.S. Energy Information Administration reported rising crude inventories last week, offset by declines in gasoline and distillate stocks. Gasoline demand increased 6% to 9.2 million barrels per day, according to the EIA.
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